Midterm Notes Môn E-commerce | Trường Đại học Quốc tế, Đại học Quốc gia Thành phố Hồ Chí Minh

lOMoAR cPSD| 58583460
1) Define e-commerce, understand how ecommerce computing, desktop •
The media business becomes more and •
User-generated content (UGC), published by
differs from e-business, identify the primary
computers, smartphones, tablet computers, local area moredecentralized, with content created and distributed creators online in the form of video, podcasts,
technological building blocks underlying e-
networks, client/server computing, packetswitched online by users (now typically referred to as creators) newsletters, literary content, online classes, digital art,
commerce, and recognize major current themes in
communications, protocols such as TCP/IP, web becoming more and more prevalent, giving rise to what and more, continues to grow and provides a method of e-commerce.
servers, HTML, and relational and non-relational is often termed the creator economy. From a technology self- publishing that engages millions: both those who
E - Commerce: involves the use of the Internet, the databases, among others. • Business - While technology perspective:
create the content and those who consume it.
World Wide Web (Web), and mobile apps and browsers provides the infrastructure, it is the business •
A mobile platform based on smartphones, •
Concerns over commercial and governmental
running on mobile devices to transact business. More applications-the potential for extraordinary returns on tabletcomputers, wearable devices, and mobile apps invasion of privacy increase.
formally, digitally enabled commercial transactions investmentthat create the interest and excitement in has become a reality, creating an alternative platform •
Concerns increase about the growing market
between and among organizations and individuals.
ecommerce. Therefore, you also need to understand for online transactions, marketing, advertising, and dominance of Amazon, Google, and Meta (often
some key business concepts such as digital markets, media viewing.
referred to as Big Tech), leading to litigation and calls
The difference between e-commerce and ebusiness: information goods, business models, firm and industry • Cloud computing completes
the for government regulation.
e-business means the digital enabling of transactions value chains, industry structure, and consumer transformationof the mobile platform by storing •
Conflicts over copyright management and
and processes within a firm, involving information behavior in digital markets.
consumer content and software on "cloud" (Internet- control continue, although there is now substantial
systems under the control of the firm. E-commerce •
Society - Understanding the pressures based) servers and making it available to any agreement among online distributors and copyright
primarily involves transactions that cross firm thatglobal e-commerce places on contemporary society consumerconnected device, from the desktop to a owners that they need one another.
boundaries. Ebusiness primarily involves the is critical to being successful in the ecommerce smartphone. •
Surveillance of online communications by
application of digital technologies to business processes marketplace. The primary societal issues are •
The Internet of Things (IoT), comprised both repressive regimes and Western democracies within the firm.
intellectual property, individual privacy, and public ofbillions of Internet-connected devices, continues to grows. policy.
grow exponentially and drives the growth of a •
Online security continues to decline as major
Primary technological building blocks underlying e-
plethora of "smart/connected" devices such as TVs, companies are hacked and lose control of customer
commerce: The technology juggernauts behind e- Major Trends In E-Commerce: From a
watches, speakers, home-control systems, and cars. information.
commerce are the Internet, the Web, and increasingly, business perspective: •
The trillions of online interactions that •
On-demand services and e-commerce
the mobile platform. • The Internet is a worldwide •
Retail e-commerce and m-commerce both occureach day create a flood of data, typically referred produce aflood of temporary, poorly paid jobs without
network of computer networks built on common settleback to "normal" growth rates (around about 9% to as big data. To make sense out of big data, firms turn benefits.
standards. The Internet links businesses, educational to 10%) after surging in 2020-2021 because of the to sophisticated software called business analytics (or
institutions, government agencies, and individuals Covid-19 pandemic.
web analytics) that can identify purchase patterns as
together, and provides users with services such as e-
2) 8 Unique Features Of E-Commerce •
The mobile app ecosystem continues to well as consumer interests and intentions in
mail, document transfer, shopping, research, instant
Technology and their Business Significance:
grow,with almost 3.3 billion people worldwide using milliseconds.
messaging, music, videos, and news.
Ubiquity: E-commerce technology is available mobile apps. •
Artificial intelligence technologies are •
The World Wide Web (the Web) is
anytime and everywhere: at work, at home, and •
Social e-commerce, based on social beingincreasingly employed in a variety of
aninformation system that runs on the Internet
elsewhere via mobile devices. Business
networksand supported by advertising, continues to ecommerce- related applications, such as for analyzing
infrastructure that provides access to billions of web
significance: The marketplace is extended beyond
grow, generating an estimated $55 billion in the United big data, customization and personalization, customer
pages. The Web added color, voice, and video to the
traditional boundaries and is removed from a States in 2022.
service, chatbots and voice assistants, and supply chain
Internet, creating a communications infrastructure and
temporal and geographic location. "Marketspace" is •
Local e-commerce, the third dimension of the efficiency.
information storage system that rivals television, radio,
created; shopping can take place anywhere.
mobile, social, local e-commerce wave, is also • Blockchain, the technology that
magazines, and libraries. • The mobile platform
Customer convenience is enhanced, and shopping
growing, fueled by an explosion of interest in underliescryptocurrencies, non-fungible tokens
provides the ability to access the Internet from a variety
costs are reduced. Global Reach: The technology ondemand services.
(NFTs), and the concept of a more decentralized
of mobile devices such as smartphones and tablets via
reaches across national boundaries and around the •
B2B e-commerce remains the "silent Internet known as Web3, attracts increasing interest,
wireless networks or cell phone service.
earth. Business significance: Commerce is enabled
giant,"generating more than five times the amount of particularly from traditional financial service firms as
Describe the major themes underlying the study of
across cultural and national boundaries seamlessly B2C e-commerce revenue.
well as firms seeking to use the technology for supply
e-commerce. E-commerce involves three broad,
and without modification. "Marketspace" includes • Mobile advertising continues to chain applications. interrelated themes:
potentially billions of consumers and millions of
grow,accounting for almost 75% of all digital ad •
Facebook rebrands as Meta, jumpstarting •
Technology - To understand e-commerce,
businesses worldwide. Universal Standards: The
spending worldwide, but may be impacted by new anincreased focus on the "metaverse," which entails
youneed a basic understanding of the information privacy-related app store rules that restrict the ability of moving the Internet experience beyond 2D screens technical standards of the Internet, and therefore the
technologies upon which e-commerce is built, advertisers to track users.
toward immersive, 3D experiences using augmented technical standards for conducting e-commerce, are
including the Internet, the Web, the mobile platform,
and virtual reality technologies. From a societal level: universal standards - they are shared by all nations
and a host of complementary technologies-cloud around the world. lOMoAR cPSD| 58583460
Business significance: There is a common, inexpensive, accordingly. For instance, Shopee analyzes a user's 4) Business Models:
information sharing; revenue is generated by
global technology foundation for businesses to use.
browsing and purchasing history to recommend • Business-To-Consumer (B2C)
E- advertising, referral fees, and subscription
Richness: Video, audio, and text messages are possible. products that align with their interests. These Commerce:online businesses selling to individual
Information richness refers to the complexity and recommendations appear on the homepage, in email consumers.
6) Explain / understand the business concepts and
content of a message. The richness of traditional newsletters, and during the checkout process, • Business-To-Business (B2B)
E- strategies applicable to e-commerce. E-commerce
markets makes them a powerful selling or commercial enhancing the shopping experience.)
Commerce:online businesses selling to other has had a major impact on the business environment in
environment. Business significance: Video, audio, and Social Technology: The technology supports user- businesses. • Consumer-To-Consumer (C2C) E- the last decade, and has affected:
text marketing messages are integrated into a single generated content (UGC), creators, and social Commerce: consumers selling to other consumers. •
Industry structure: the nature of players in
marketing message and consuming experience. (E- networks. •
Mobile E-Commerce (M-Commerce): refers anindustry and their relative bargaining power by
commerce technologies have the potential for offering Business significance: Enables user content creation
touse of mobile devices to enable online transactions.
changing the basis of competition among rivals, the
considerably more information richness than and distribution and supports the development of •
Social E-Commerce: e-commerce that barriers to entry, the threat of new substitute products,
traditional media because the former are interactive social networks.
isenabled by social networks and online social the strength of suppliers, and the bargaining power of
and can adjust the message to individual users. relationships. buyers.
Chatting online with a customer service representative, 3) Identify the key components of e-commerce •
Local E-Commerce: e-commerce that is •
Industry value chains: the set of
for instance, can come close to the customer experience business models.
focusedon engaging the consumer based on his or her activitiesperformed in an industry by suppliers,
that takes place in a small retail shop. The richness A successful business model effectively addresses eight current geographic location.
manufacturers, transporters, distributors, and retailers
enabled by ecommerce technologies allows retail and key elements:
that transforms raw inputs into final products and
service merchants to market and sell "complex" goods •
Value proposition: how a company’s product 5) Describe the major B2C business models.
services by reducing the cost of information and other
and services that heretofore required a face-toface orservice fulfills the needs of customers. Typical
transaction costs. • Firm value chains: the set of
presentation by a sales force to a much larger ecommerce value
There are a number of different business models being activities performed within an individual firm to create
used in the B2C e-commerce arena. The major models audience.) propositions include
final products from raw inputs by increasing include the following:
Interactivity: The technology enables interaction with personalization, customization, convenience, and operational efficiency. •
Portal — offers powerful search tools plus the user.
reduction of product search and price delivery costs. •
Business strategy: a set of plans for
anintegrated package of content and services; typically
Business significance: Consumers are engaged in a •
Revenue model: how the company plans
achievingsuperior long-term returns on the capital
dialog that dynamically adjusts the experience to the tomake money from its operations. Major ecommerce utilizes a
invested in a firm by offering unique ways to
individual consumer and makes the consumer a co- revenue models include the advertising model, combined
subscription/advertising differentiate products, obtain cost advantages, compete
participant in the process of delivering goods to the subscription model, transaction fee model, sales model, revenue/transaction fee model; may be general or globally, or compete in a narrow market or product market. and affiliate model. specialized (vortal). segment.
Information Density: The technology reduces • Market opportunity: the revenue •
E-tailer — online version of traditional
information costs and raises quality. Business
potentialwithin a company’s intended marketspace.
retailer;includes virtual merchants (online retail store 7) Understand the questions you must ask and
significance: Information processing, storage, and • Competitive environment: the
direct only), bricksand-clicks e-tailers (online distribution answer, and the steps you should take, when
communication costs drop dramatically, while
andindirect competitors doing business in the same channel for a company that also has physical stores), developing an e-commerce presence. Questions you
currency, accuracy, and timeliness improve greatly.
marketspace, including how many there are and how catalog merchants (online version of direct mail must ask and answer when developing an e-commerce
Information becomes plentiful, cheap, and accurate. profitable they are.
catalog), and manufacturers selling directly to the presence include:
(Online retailers can adjust prices in real-time based on • Competitive advantage: the factors consumer.
• What is your vision and how do you hope
factors like demand, competitor pricing, and customer thatdifferentiate the business from its competition, • Content provider — information toaccomplish it?
demographics. For example, airlines often use dynamic enabling it to provide a superior product at a lower cost. andentertainment companies that provide digital • What is your business and revenue model?
pricing to offer different prices for the same flight based •
Market strategy: the plan a company content; typically utilizes an advertising, subscription, • Who and where is the target audience?
on factors such as the time of booking, demand for developsthat outlines how it will enter a market and or affiliate referral fee revenue model.
• What are the characteristics of the marketplace?
seats, and historical purchasing data.) attract customers. •
Transaction broker — processes online • Where is the content coming from?
Personalization And Customization: The technology •
Organizational development: the process salestransactions; typically utilizes a transaction fee • Conduct a SWOT analysis.
permits personalization and customization.
ofdefining all the functions within a business and the revenue model.
• Develop an e-commerce presence map.
Business significance: Marketing messages can be skills necessary to perform each job, as well as the •
Market creator — uses Internet technology • Develop a timeline.
tocreate markets that bring buyers and sellers together;
personalized and products and services customized, process of recruiting and hiring strong employees. • Develop a detailed budget
typically utilizes a transaction fee revenue model. •
based on individual characteristics. (Personalization • Management team: the group
of Service provider — offers services online. •
and customization allow firms to precisely identify individualsretained to guide the company’s growth and
Explain the process that should be followed in
Community provider — provides an online community
market segments and adjust their messages expansion.
building an e-commerce presence • Factors you must
of like-minded individuals for networking and lOMoAR cPSD| 58583460
consider when building an ecommerce site include
hosting fee. The downside is that if the site requires fast
sell, your brand’s mission) - Contact information. - can be threatened by criminals or terrorists. 10)
hardware, software, telecommunications capacity,
upgrades due to heavy traffic, the chosen hosting
Search engine. (within in your site) - Email Identify the major e-commerce payment system in
website and mobile platform design, human resources, company may or may not be capable of keeping up. subscription form.
use today in Vietnam. (Chapter 5 slides). From a
and organizational capabilities.
Reliability versus scalability is the issue in this - Legal information (terms, conditions andprivacy business point of view, which payment do you
• The systems development life cycle (amethodology instance. policies)
prefer to use. Why? (pls provide short answer)
for understanding the business objectives of a system
Step 4: Set up an online store.
and designing an appropriate solution) for building an 8) How to build an e-commerce website. B2C
Popular payment in Vietnam:
- High quality product photos- Brand consistent
e-commerce website involves five major steps: Answer: product description.
1) E-wallet (Momo, Vopay, Zalopay...)
• Identify the specific business objectives for thesite, Here are the steps to building an e-commerce website. - Inventory matches the number of the website. -
and then develop a list of system functionalities and Step 1: Define e-commerce business models.
Payment should be connected to business bank 2) Bank transfer (bank account) information requirements. - E – Tailer accounts.
• Develop a system design pecification (bothlogical - Community provider (Facebook) 3) Credit card, Debit card
- Navigation, make sure it is easy for yourcustomers design and physical design).
- Content creator (movie, music, news,
to search. Step 5: Launch your website.
From a business point of view, I prefer e-wallet due
• Build the site, either by in-house personnel orby magazines ..) to serveral reasons:
outsourcing all or part of the responsibility to outside - Market creator (sales, on-demand service,sharing - After you launch your website, the next steps you contractors. service)
have to take advantage of digital marketing to •
Wide Adoption: E-wallets are highly • Test the system (unit testing, system - Service provider (cloud storage,
attract your customers to get to know your site.
popular among Vietnamese consumers, especially in
testing,acceptance testing, A/B (split) testing, and
software,applications) - Affiliate (Access trade in urban areas.
multivariate testing). • Implement and maintain the Vietnam)
9) Understand the scope of EC crime and security site. - Portal (gate way)
problems, the key dimensions of EC security, and •
Low Transaction Fees: E-wallet transactions
• Alternative web development methodologiesinclude - Transaction broker (online payment services)
the tension between security and other values.
typically involve lower fees compared to credit card prototyping, agile development, DevOps,
transactions, which can be advantageous for •
While the overall size of cybercrime is
componentbased development, and serviceoriented Step 2: Choose an e-commerce platform: here are some
businesses, especially for smaller transactions.
unclear, cybercrime against e-commerce sites is
architecture (SOA) implemented using web services famous platforms.
growing rapidly, the amount of losses is growing, and •
Quick Settlement: E-wallet payments offer and microservices.
- Shopify: Shopify is the most popular softwareas-a- the management of e-commerce sites must prepare for quick settlement times, with funds typically deposited
• The basic business and system functionalities ane-
service (SaaS) platform because it’s robust and a variety of criminal assaults.
into the merchant's account within a short period,
commerce site should contain include a digital
easy to use. There are tons of add-on tools and improving cash flow.
catalog, a product database, customer tracking,
features that allow for drop shipping and •
There are six key dimensions to e-
shopping cart/payment system, an on-site blog, a
omnichannel selling, so you can sell through your c.ommerce security: integrity, onrepudiation, •
Integration with Other Services: E-wallets
customer database, an ad server, a site tracking and
website, on social media and beyond. - Wix: As a authenticity, confidentiality, privacy, and availability.
oftenintegrate with various local services such as food
reporting system, and an inventory management
web builder, Wix has an easy dragand-drop method
delivery platforms, providing additional exposure and system. •
Although computer security is considered
that offers many customizable templates and design
potential cross-promotion opportunities for the
• Advantages of building a site in-house includethe
necessary to protect e-commerce activities, it is not
features. To use it as an ecommerce platform, you’ll business.
ability to change and adapt the site quickly as the
need to a paid plan. Wix has all the features you’d without a downside. Two major areas where there are
market demands and the ability to build a site that
need, such as tracking orders, omnichannel selling tensions between security and website operations are: However, apart from e-wallet, I also consider offering
does exactly what the company needs. and add-on tools.
other payment options such as bank transfers to cater
• Disadvantages of building a site in-houseinclude •
Ease of use: The more security measures
- BigCommerce: This e-commerce platform isused
to a broader range of customers and provide flexibility
higher costs, greater risks of failure, a more
thatare added to an e-commerce site, the more difficult
by enterprise-level software companies offering
in payment choices. As Bank transfer fees in Vietnam
timeconsuming process, and a longer staff learning
it is to use and the slower the site becomes, hampering
plenty of customization to suit your needs. It also
are generally low, especially for domestic transactions.
curve that delays time to market.
ease of use. Security is purchased at the price of
enables powerful features such as SEO tools and
Bank transfers also offer direct settlement into the
• Using design templates cuts development time,but
slowing down processors and adding significantly to international selling.
merchant's bank account, eliminating the need for
preset templates can also limit functionality.
data storage demands. Too much security can harm
third-party intermediaries and reducing transaction • A similar decision is also
necessary Step 3: Start customizing your website.
profitability, while not enough can potentially put a processing costs.
regardingoutsourcing the hosting of the site versus company out of business.
- Homepage (what customers will see first) - keeping it in-house.
Insight on Business: Are Biometrics the solution for
Category pages (including a product page for •
Public safety: There is a tension between the
Relying on an outside vendor places the burden of e-commerce security?
browsing and selecting) - Shopping cart and claims of individuals to act anonymously and the
reliability on someone else in return for a monthly
checkout page - About us (who you are, what you needs of public officials to maintain public safety that 1.What are biometrics? lOMoAR cPSD| 58583460
Biometrics involves identifying individuals based on
continuously improving biometric security measures to Looking ahead, Etsy may face challenges such as
availability, and price. It provides instant confirmation
unique physiological characteristics such as
stay ahead of evolving cyber threats.
maintaining user trust amidst technological
for same-day bookings through QR code technology,
fingerprints, facial features, iris patterns, and other advancements, addressing
enabling tickets to be delivered as e-vouchers. The app
physical attributes like voice or heart rhythms. These
Insight on Technology: Behind the scenes at Etsy
sustainability concerns, and navigating regulatory
also incorporates data analytics to personalize
characteristics are inherent to each person and are
recommendations based on user behavior. 1.
Describe Etsy's approach to launching
landscapes. Opportunities include further enhancing
difficult for malicious actors to spoof. Biometric
itsplatform, including the concept of a minimum
personalization, expanding into new markets, and 5.
How did Klook adapt its strategy during
authentication replaces traditional methods such as
viable product (MVP). How did this approach
innovating in areas like augmented reality and social
theCovid-19 pandemic, and what initiatives did it
passwords or PIN numbers with physical attributes for contribute to the platform's early success? commerce.
undertake to maintain growth? identity verification.
Etsy adopted the concept of a minimum viable product Insight on Technology: Klook Sets Its Sights On New During the Covid-19 pandemic, Klook shifted its focus 2.
How could the use of biometrics make (MVP), prioritizing a quick launch with basic Vistas
to domestic travel and rebranded its marketing message ecommerce more secure?
functionality to start attracting users. This approach 1.
What is Klook's core value proposition to focus on bringing "joy" back to customers who had
allowed them to enter the market rapidly and gather
Biometrics offer a more secure means of verifying andtarget market?
missed traveling during the pandemic. This strategy
feedback from early users, which they used to iterate
user identities in e-commerce transactions compared
proved successful, with Klook exceeding its 2019
and improve the platform over time, contributing to its
to traditional methods. Since biometric data is unique
Klook's core value proposition is to provide a hassle- revenues in 2021 through domestic travel alone. early success.
to each individual and difficult to replicate, it reduces
free and enjoyable travel experience by offering a wide Additionally, Klook entered strategic partnerships with
the risk of unauthorized access and fraud. For
array of activities, attractions, and services at Kayak and Booking.com to expand its reach and 2.
What were some of the initial
competitive prices. Its target market initially focused on
example, the use of facial recognition or fingerprint offerings.
challengesfaced by Etsy's technology team, and
adventure-seeking travelers in Southeast Asia but has
scanning can significantly enhance the security of
how did they address them to improve user
since expanded to cater to international tourists.
online payments and reduce the likelihood of identity
experience and platform functionality?
theft or account takeover. Additionally, biometric 2.
How did Klook initially overcome
authentication can streamline the user experience by
Initially, Etsy faced challenges such as rudimentary
thechallenge of convincing merchants to partner
eliminating the need to remember passwords, thereby
search functionality and limited server capacity. They with them?
reducing instances of forgotten passwords and
addressed these issues by quickly adding features like abandoned shopping carts.
color search and chat forums based on user feedback.
Klook initially overcame the challenge of convincing
Over time, they improved their technology
merchants to partner with them through old-fashioned
3.What are some of the potential dangers in using infrastructure to support scalability and continuous
cold-calling. As brand awareness grew, they were able biometrics? development.
to build strategic partnerships with big names in the
tourism sector, including transportation companies,
Despite their advantages, biometric technologies also 3.
Analyze the significance of
tourist attractions, and hoteliers.
pose certain risks and challenges. One concern is the mobilecommerce for Etsy's business model and
potential for biometric data to be compromised or technological infrastructure. What features and 3.
How has Klook scaled up its operations
misused by cybercriminals. While biometric data like functionalities does Etsy offer through its mobile and digital content?
passwords can be changed if compromised, biometric platform, and how have they contributed to its
characteristics such as fingerprints or facial features are success?
Klook has raised significant funding, totaling more than
immutable, making them a permanent identifier.
$720 million from investors such as Sequoia Capital,
Additionally, there are privacy concerns associated Mobile commerce plays a significant role in
Softbank Vision Fund, and Goldman Sachs. This
with the collection and storage of biometric data. Etsy's business model, with features like search, funding has been used to develop the app, associated
Unauthorized access to biometric databases could lead curation, personalization, augmented reality, and social systems, and enterprise software, allowing for
to identity theft or unauthorized surveillance. shopping offered through its mobile platform. The increased traffic and digitization of content.
Moreover, there are legal and ethical considerations mobile app's high conversion rate and increasing Additionally, Klook has expanded its geographical
surrounding the use of biometrics, such as the potential downloads demonstrate its importance in driving sales presence to Europe, North America, and Australia.
for government abuse of facial recognition technology and user engagement.
for mass surveillance purposes. Furthermore, 4.
What technological features does the
researchers have demonstrated vulnerabilities in some 4.
In your opinion, what are the
Klookapp offer to enhance the user experience?
biometric systems, such as the ability to spoof facial keytechnological challenges and opportunities that The Klook app offers an intuitive layout organized by
recognition with masks, highlighting the importance of Etsy may face in the future as it continues to grow
and evolve its platform?
destination and activities, with filters for dates,